Business Law: Chapter 2 The Resolution of Private Dispute I.

State Courts and Their Jurisdiction

52 court systems, federal plus system for each state and the District of Columbia a. Courts of Limited Jurisdiction Minor criminal cases and specialized matters Do not keep record Appeals of their decision require new trial Find relevant facts, identify the appropriate rules and combine the facts with law to make decision b. Trial Courts More money and major crimes Keep detailed records State has at least one trial courts for each county c. Appellate Courts Decide only legal questions Correct legal errors d. Jurisdiction and Venue Cannot sue in any court the plaintiff wants Chosen court must have jurisdiction over the case Jurisdiction: power to hear a case and to issue a decision binding on the parties Applicable venue is required Subject-Matter Jurisdiction o Decide the type of dispute involved In Personam Jurisdiction: residence, location or activities of the defendant In Rem jurisdiction: presence of the property of the state Venue: territorially fair and convenient forum to hear the case Role of Forum Selection Cause: contracts stated dispute must be litigated in certain states

II.

Federal Courts and Their Jurisdiction

a. Federal District Courts Determine both facts and laws District Court Jurisdiction o Diversity jurisdiction o Federal question jurisdiction b. Specialized Federal Courts Court of Federal Claims, court of international trade, bankruptcy, Tax courts c. Federal Courts of Appeals Review the legal conclusion 13 circuit courts of appeals Hear appeals from district courts region d. The U.S. Supreme Courts Only questions of law when it decides appeals from federal courts of appeals and highest state courts o Validity of any treaty or federal statute

Business Law: Chapter 2 The Resolution of Private Dispute

o o State statute is challenged as repugnant to federal law Under federal law

Federal Court Cases that deal with the constitutionality of a law; Cases involving the laws and treaties of the U.S.; Ambassadors and public ministers; Disputes between two or more states; Admiralty law, and Bankruptcy State Court Most criminal cases, probate (involving wills and estates), Most contract cases, tort cases (personal injuries), family law (marriages, divorces, adoptions), etc